Tags: global | blue | chip | stock

10 More Reasons Why Global Blue Chip Stocks Look Great

10 More Reasons Why Global Blue Chip Stocks Look Great
(Richard Seeney/Dreamstime)

By Monday, 01 June 2020 08:00 AM Current | Bio | Archive

After the major coronavirus stock market correction in March, many stocks were 30, 40, and even 50% off their highs.

As an example, a $200 stock would be back at $100 if the stock was a 50% off its 52-week high.

Many of the stocks were put back to 2016 prices and some were hurt much worse than that including: travel, oil and gas and entertainment related stocks. Now, what would I buy in today’s market?

Some blue-chip examples of what to buy may include:

  • SPHD Invesco S&P 500 High Dividend Low Volatility ETF with a 5.60% estimated dividend yield off 25% from its high.
  • SLB Schlumberger Limited which is off over 50% from its highs with a 2.6 percent estimated dividend.
  • HIG The Hartford Financial Services Group, Inc. with a 3.3% estimated dividend yield off 38% from its highs.
  • BUD Anheuser-Busch InBev with a 4.23% estimated dividend is off over 50% from its highs.

The reason to invest in these stocks is that some companies are simply better insulated from COVID 19. With the new data suggesting that people under 65 are relatively safe from the virus, consumers are making better decisions while companies are adapting to accommodate customers.

Some Prudent Rules for Buying Stocks and ETFs:

  1. I like ETFs and stocks with solid dividends that are down more than 25% from their 52 week highs.
  2. Blue-chip related ETFs and stocks with enough cash to outlast their competitors.
  3. ETFS and stocks poised to sell products and services to the worlds 6+ billion consumers.
  4. ETFs and stocks which have adapted for better online sales in the last 100 days.
  5. ETFs or stocks with a quality dividend are super inside a tax deferred account.
  6. Avoid ETFs and stocks that may be negatively affected by people working from home or securities with “big city COVID-19 revenue” issues such as some real estate stocks.

Another 10 Reasons the Global Stock Markets Can Stay Strong

  1. Skeleton crews are efficient and produce higher profits
  2. With layoffs of unessential people, the shift of the “healthcare-cost burden” onto the government which frees up money for small, medium and large companies.
  3. Less lawsuits and litigation due to less employees and customer interaction.
  4. Reduction in stock options and other stock benefits which reduce the value of stocks.
  5. More people telecommuting should be lowering costs and increasing productivity.
  6. Anything “delivery related” and “drive through” related may continue to benefit.
  7. The laziest employees will want to stay on unemployment as long as possible. Thus, efficiencies, profits, commissions, and bonuses for those working will go up, while costs go down.
  8. Fuel and energy is cheap and abundant.
  9. Borrowing money is cheaper and costs of loans are down.
  10. Some companies will close their units in high tax states, cut their losses, relocate, and rent space outside of expensive states and cities. Thus, profits up while capturing losses.

Investors must think outside of the box. Think about demographics, buying trends, and limitations of consumers. It is also key to look at how large industry sectors are changing such as health, education, energy, housing, restaurants and travel.

If you look at great demographic-economists such as Harry Dent, they have been prophesying for 20 years that the stock markets are an unstoppable train just based on population expansion.

Overall, we have 7.594 billion people on earth that need food, housing, healthcare, education, entertainment and more. Look at how and what others are buying. Look at what people are doing with their money. That is where the secrets of investing lie for the future.

George Mentz JD MBA CWM Chartered Wealth Manager ® is a licensed attorney and CEO of GAFM ® global education, which is an ISO 29990 Certified professional development company operating in over 50 nations. Mentz is an award-winning author and advisory board member to several companies around the world in education, charities, and FinTech Companies.

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
GeorgeMentz
Investors must think outside of the box. Think about demographics, buying trends, and limitations of consumers. It is also key to look at how large industry sectors are changing such as health, education, energy, housing, restaurants and travel.
global, blue, chip, stock
642
2020-00-01
Monday, 01 June 2020 08:00 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved